Question

In: Accounting

What would be the impact on the accounting equation when a company acquires treasury stock? Decrease...

  1. What would be the impact on the accounting equation when a company acquires treasury stock?
    1. Decrease assets and decrease stockholders' equity.
    2. Decrease assets and increase stockholders' equity.
    3. No effect on the accounting equation.
    4. Increase assets and increase stockholders' equity.
  1. How many of the following transactions would affect operating cash flows reported in the statement of cash flows (all transaction involve cash)?

Borrowed $50,000 from the bank Purchased $12,000 in supplies

Provide services to customers for $27,000 Paid the utility bill of $750

Purchased a delivery truck for $12,000 Received $25,000 from issuing common stock

  1. Four.                            B) Two.                            C) One.                            D) Three.
  1. It is easier for a company to cheat on its taxes
    1. same for periodic inventory accounting and perpetual inventory accounting
    2. under periodic inventory accounting than under perpetual inventory accounting
    3. under perpetual inventory accounting than under periodic inventory accounting
  1. When a firm takes a big bath
    1. it increases cash flows                                          B) it increases revenues

C) it decreases cash flows                                         D) it increases expenses

  1. When a company with a current ratio of 1.2 pays a current liability:
    1. Its current ratio remains unchanged.                     B) Its current ratio increases.

C) Its debt to equity ratio increases.                          D) Its current ratio decreases.

Solutions

Expert Solution

1. Option D increase assets and equity

2. Option D three, purchase supplies, paid utility bill and provide service to customerr

3. Option C

4. Option B increase revenue

5. Optin B current ratio increase as denominator decreases which contain current liabilities


Related Solutions

Indicate what impact the following transactions would have on the accounting equation, Assets = Liabilities +...
Indicate what impact the following transactions would have on the accounting equation, Assets = Liabilities + Equity A. Paid monthly note payment to bank B. Sold inventory on account C. Bought supploes, to be paid for next month D. Received cash from sales this month E. Paid for inventory purchased on account last month
Discuss what treasury stock is and why a company would want to buy their own stock....
Discuss what treasury stock is and why a company would want to buy their own stock. Is it accounted for differently than common and preferred stock?
What is the impact of accounting decisions on the financial statements? -What would be the impact...
What is the impact of accounting decisions on the financial statements? -What would be the impact in the income statement and balance sheet?
33. How would a company record the purchase of $30,000 of Treasury Stock on the Statement...
33. How would a company record the purchase of $30,000 of Treasury Stock on the Statement of Cash Flows? As a cash outflow for investing activities This transaction would not be reported on the Statement of Cash flows. As a cash inflow for investing activities As a cash inflow for financing activities As a cash outflow for financing activities 34. When preparing the Statement of Cash Flows under the direct method, how do we determine the payment from suppliers? Purchases...
Identify the impact of each of the given transactions on the accounting equation.
Identify the impact of each of the given transactions on the accounting equation.
What is the accounting equation?
What is the accounting equation?
WHAT HAPPENS WHEN YOU BARTER WITH STOCK? Does It Matter Whether It’s Treasury Stock or Newly...
WHAT HAPPENS WHEN YOU BARTER WITH STOCK? Does It Matter Whether It’s Treasury Stock or Newly Issued Stock? Clyde:              I acquired this land for my business by issuing stock. I did not pay a penny. Since it’s my stock, and I decided how much to give up for the land, does that mean I get to determine the value of the land on my balance sheet? Fredrika:         You could have issued the stock to somebody else, taken the cash received,...
WHAT HAPPENS WHEN YOU BARTER WITH STOCK? Does It Matter Whether It’s Treasury Stock or Newly...
WHAT HAPPENS WHEN YOU BARTER WITH STOCK? Does It Matter Whether It’s Treasury Stock or Newly Issued Stock? Clyde:              I acquired this land for my business by issuing stock. I did not pay a penny. Since it’s my stock, and I decided how much to give up for the land, does that mean I get to determine the value of the land on my balance sheet? Fredrika:         You could have issued the stock to somebody else, taken the cash received,...
1. Describe and discuss the journal entries for Treasury stock (when a company buys back their...
1. Describe and discuss the journal entries for Treasury stock (when a company buys back their stock) including what you need to do when Treasury stock is sold at, below or above the price it was purchased. Include in your discussion how Treasury stock affects the Balance Sheet. Review the journal entries and concepts for Treasury stock.
Please no handwritten answers and provide reference if possible. What is treasury stock? Why would a...
Please no handwritten answers and provide reference if possible. What is treasury stock? Why would a company repurchase its own stock? How might they dispose of the treasury stock?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT